Ukrainian farmers will be forced to sell their grain at $40 below cost.

As a result of the closed Black Sea ports and the current cost of logistics through the Danube, farmers will face the reality of selling grain at $40 cheaper per ton, which is below their production cost. This will prevent agrarians from completing next year’s sowing and could result in an overall 30% reduction in grain production in Ukraine, equivalent to 15 million tons.

The European Business Agency (EBA) predicts that the closure of the grain corridor may lead to a 33% decrease in 2023 winter crops, or by 1.5 million hectares. This means that the wheat and barley harvest will decrease by six million tons.

The EBA emphasizes the importance of joint efforts to implement a strategy to liberate the Ukrainian Black Sea ports for commercial transportation of all types of cargo. For this, first, it is necessary to ensure navigation safety, including demining maritime territories. Secondly, creating war risk insurance programs for shipping companies that conduct direct trade with Ukraine is crucial.

The EBA appealed to the spokesman of the UN Secretary-General, Stephane Dujarric, with a request to take all necessary measures to end the Russian blockade of the Ukrainian seaports.